Question

Evolution of modern banking in Nigeria

Answer 1

Evolution of modern banking in Nigeria

The origin of modern banking in Nigeria is started from the year 1883. At that time the African banking corporation was established. This is because in 1884 British bank is established in the west africa so by following that the Nigerian bank was formed. So in the initial stage bank can not survive as much as expected but in later days it bagan to survive and becomes in a good position. From this time there are other foreign banks are emerged and started their works. Then banks began to give credits for the businessman and it is a milstone that it makes the bank to perform a mainstream activity in the whole economy.

The 1952 ordinance introduced for the first time legal requirements as to the establishment and operation of banks. So as per this ordinance the business who doesnot have the liscense to carry on the banking business can not continue their business there. So after that inorder to start a banking business the firms should have the license which is provided by the government. The 1958 central bank of Nigeria ordinance came into force on 1st July 1959 and since then the central bank has through a series of legislation. The previous ordinance are get replaced by the new ordinance.  when in the early 1980s banks began to reap huge profits, there was public discontent about the quality of service they rendered while they remained inaccessible to the large number of population. So from this point the banking industry is seeks to be modernized and it is very essential to makes the banks modernized. For this purpose Government planned and executed different programs. This is how the Nigerian banking sector get mordernized.

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